Santander and NatWest were among the lenders to raise interest rates in the direct aftermath of the Bank of England’s latest base rate hike.
The base rate was raised by 0.50% to 5% today, where most commentators had speculated a less drastic rise to 4.75%.
At 11.30am on the day of the Bank of England’s announcement, Leeds Building Society informed brokers that it would be increasing selected shared ownership and residential fixed rates.
This was part of the building society’s standard range management process.
Leeds’ tracker rates increased by 0.50% in line with the base rate.
It also withdrew its residential 3-year fixed rate, and introduced a 2-year fee-free retirement interest-only product.
Leeds BS said that applications on withdrawn products would be accepted up to midnight tonight (22nd June).
Santander increased its tracker rates, but for existing customers made this effective from 1st August, with payments changing from 26th August onwards.
This included the lender’s follow-on rate, which will increase to 8.25%.
From the start of August, Santander will also increase its Alliance & Leicester tracker products by 0.50%.
However, the bank confirmed that its standard variable rate (SVR) for both Santander and Alliance & Leicester products remained unchanged at 7.50%.
For new customers and product transfers, all tracker and follow-on rates were increased, effective from 27th June.
NatWest has also confirmed that it will mirror the increase.
The base rate for NatWest tracker mortgages will rise to 5.0% from Monday 26th June.
